Along a Downward-Sloping Linear Demand Curve

question 96

Multiple Choice

Along a downward-sloping linear demand curve

• A) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.
• B) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant.
• C) the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases.
• D) the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remains constant.

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Definitions:

Amortization

The gradual reduction of a debt or the spreading out of the cost of an intangible asset over its useful life.

Discount

A reduction from the usual cost of something, often applied to encourage sales or offered to certain groups.

Bonds Payable

Long-term liabilities represented by negotiable certificates, indicating a promise to pay a specified sum of money plus interest at defined intervals.

Straight-line

A method of calculating depreciation of an asset where the expense is evenly distributed over its useful life.